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Sabre Rides on Growing Clientele & Strong Product Portfolio
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On Dec 7, we issued an updated research report on Sabre Corporation (SABR - Free Report) .
The company is a provider of technology solutions to the global travel and tourism industry via four segments — Sabre Airline Solutions, Sabre Hospitality Solutions, Sabre Travel Network and Travelocity. Its software, data, mobile and distribution solutions are used by clients to manage critical operations, such as passenger and guest reservations, revenue management, and flight, network and crew management.
Sabre has beaten the Zacks Consensus Estimate in each of the trailing four quarters, the average positive surprise being 11.57%.
We believe that impressive results will help sustain the stock’s momentum. Notably, shares of Sabre have gained 27.9% year to date against the industry’s decline of 13.5%.
Let’s delve deeper and analyze the prospects of the stock.
Factors Influencing the Stock
Sabre is benefiting from strong adoption of its solutions at its Travel Network and Hospitality Solutions business segments. Increase in global bookings, new business wins and conversions are driving its Travel Network segment. Moreover, growth in SynXis software and services business is a positive.
The company has a diversified clientele, which includes online and offline travel agencies, airlines and hotel companies. The diverse customer base apart from adding to the top line, lowers customer concentration risk.
Apart from growing number of key clients, Sabre is gaining from its continued product launches. Recently, the company unveiled the Sabre Commercial Platform with Aeroflot, Etihad and Ethiopian Airlines as initial launch partners. This is a major upgrade to its SabreSonic and AirVision suite, and is expected to be a key growth driver.
Moreover, Sabre generates part of its revenues from the Software-as-a-Service (SaaS)-based offerings of its Airline and Hospitality Solutions. Per Gartner, revenues from SaaS are expected to grow 22.2% to reach $73.6 billion by the end of 2018. The firm also estimates that about 45% of total application software spending will be on SaaS by 2021. These projections bode well for the company.
Notably, Sabre’s collaborations with Amazon’s (AMZN - Free Report) AWS and Microsoft (MSFT - Free Report) for the usage of the cloud infrastructure will further strengthen cloud-based deployment of the SaaS solutions. Given the growth of the SaaS industry coupled with the fact that the company caters to different sectors of the travel industry, we believe that Sabre will manage to gain a major share of the projected growth.
Long-term earnings growth for Symantec is pegged at 7.90%.
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Sabre Rides on Growing Clientele & Strong Product Portfolio
On Dec 7, we issued an updated research report on Sabre Corporation (SABR - Free Report) .
The company is a provider of technology solutions to the global travel and tourism industry via four segments — Sabre Airline Solutions, Sabre Hospitality Solutions, Sabre Travel Network and Travelocity. Its software, data, mobile and distribution solutions are used by clients to manage critical operations, such as passenger and guest reservations, revenue management, and flight, network and crew management.
Sabre has beaten the Zacks Consensus Estimate in each of the trailing four quarters, the average positive surprise being 11.57%.
We believe that impressive results will help sustain the stock’s momentum. Notably, shares of Sabre have gained 27.9% year to date against the industry’s decline of 13.5%.
Let’s delve deeper and analyze the prospects of the stock.
Factors Influencing the Stock
Sabre is benefiting from strong adoption of its solutions at its Travel Network and Hospitality Solutions business segments. Increase in global bookings, new business wins and conversions are driving its Travel Network segment. Moreover, growth in SynXis software and services business is a positive.
The company has a diversified clientele, which includes online and offline travel agencies, airlines and hotel companies. The diverse customer base apart from adding to the top line, lowers customer concentration risk.
Apart from growing number of key clients, Sabre is gaining from its continued product launches. Recently, the company unveiled the Sabre Commercial Platform with Aeroflot, Etihad and Ethiopian Airlines as initial launch partners. This is a major upgrade to its SabreSonic and AirVision suite, and is expected to be a key growth driver.
Moreover, Sabre generates part of its revenues from the Software-as-a-Service (SaaS)-based offerings of its Airline and Hospitality Solutions. Per Gartner, revenues from SaaS are expected to grow 22.2% to reach $73.6 billion by the end of 2018. The firm also estimates that about 45% of total application software spending will be on SaaS by 2021. These projections bode well for the company.
Notably, Sabre’s collaborations with Amazon’s (AMZN - Free Report) AWS and Microsoft (MSFT - Free Report) for the usage of the cloud infrastructure will further strengthen cloud-based deployment of the SaaS solutions. Given the growth of the SaaS industry coupled with the fact that the company caters to different sectors of the travel industry, we believe that Sabre will manage to gain a major share of the projected growth.
Zacks Rank & A Stock to Consider
Sabre currently carries Zacks Rank #2 (Buy).
Another top-ranked stock in the broader Computer and Technology sector is Symantec Corporation , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Symantec is pegged at 7.90%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>